The Japanese yen has not had a very good start to Tuesday's session on the FX markets. Japan's currency temporarily broke above the 158.26 zone today, which have not been seen on the pair since July 2024. The U.S. dollar's surge was triggered by yesterday's announcements by Trump, who negated early announcements of softer planned tariffs on individual countries.
Donald Trump maintains his protectionist stance towards the economy, which indirectly and directly supports the world's reserve currency.
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Open account Try demo Download mobile app Download mobile appHowever, early moves seen on the pair were quickly erased after Finance Minister Katsunobu Kato reiterated concerns about speculative selling of the yen as the currency reached 158.40 yen per dollar. This is not far from the 160 yen level that triggered the intervention six months ago.
Financial markets are becoming increasingly convinced that the BoJ will raise interest rates at a faster pace than previously anticipated. The market now expects the BoJ to raise rates by a total of 50 basis points by the end of the year.
Source: Bloomberg Financial LP
Source: xStation
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